Press Release
IFC Investsin Motilal Oswal Alternates’ Fifth Fund to Help Indian Mid-Market CompaniesExpand, Create Jobs in Consumer, Financial Services, Life Sciences & Manufacturing
Mumbai, India,June 16, 2025 — IFC today signed an agreement to invest in Motilal Oswal Alternates’fifth vintage fund to help mid-market companies in India expand, adopt advancedtechnology, and create jobs in sectors such as consumer, financial services,life sciences, and manufacturing.
IFC is making a $60 million equity investment inIndia Business Excellence Fund V G, which is managed by MO Alternates, theprivate investment arm of financial services conglomerate Motilal Oswal FinancialServices Ltd. IFC’s investment in the fund will be made along with anadditional $60 million co-investment envelope that will allow IFC toselectively invest alongside the fund in future deals.
The fund, with a target size of $750 million(with an additional green-shoe option of $150 million) will identify andsupport 12 to 16 mid-market companies with high growth potential, especiallycompanies that can extend services beyond India’s major cities to low-incomestates. In addition to providing capital, IFC will help the fund manager improvewomen’s participation in the workforce at investee companies through workshopsand standard setting.
“We are delighted to deepen our partnershipwith IFC, which shares our goal to provide growth capital to companies acrossIndia, including the distant Tier-2 and Tier-3 cities and help them expand,”said Vishal Tulsyan, MD and CEO of Motilal OswalAlternates. “IFC’s investment in the fund sends a powerful signal to otherinvestors, especially institutional investors, to invest in India. This willalso encourage other local fund managers to raise funds that includeinvestments in underserved regions and attract greater commercialinstitutional investors into the segment, thereby enabling upward mobility andlivelihood enhancement in the region.”
Mid-market companies play a crucial role inIndia’s economic development, but they often lack access to formal credit,especially during economic downturns. Increasingly, private equity is helpingaddress the funding gap by providing capital and management expertise to help thecompanies expand, create jobs, and strengthen financial sustainability. PE-fundedcompanies tend to grow faster, create significantly more employment, and paymore taxes than comparable companies with no PE funding.
“IFC invests in private equity funds to helpentrepreneurs and the private sector in emerging markets access growth capital,create jobs, drive innovation, and boost market competitiveness,” said MohamedGouled, IFC''s Vice President of Industries. “IFC’s investment aims to leverageprivate capital and solutions to boost job creation, promote inclusive andsustainable growth, and support India’s transition to a higher middle-incomecountry. It’s critical to provide capital to companies in this mid-marketsegment to help India maintain economic growth to absorb additional employmentand equitable access to opportunities.”
This is IFC’s third fund engagement with Motilal, after investing $25 million in its secondand $35 million in its fourth fund. IFC also co-invested $10.4 million alongsidethe fund manager in VVDN, an electronics manufacturing company. To date, MO Alternateshas invested $1.1 billion in 50 companies.
“Our long-standing partnership with MotilalOswal Alternates reflects a shared commitment to strengthening India’smid-market ecosystem and driving impact at scale,” said Imad N. Fakhoury, IFC’sRegional Director for South Asia. “Through this anchor investment andco-investment envelope, we aim to support innovative mid-market companiesacross key sectors such as manufacturing, life sciences, and financialservices. By unlocking capital for entrepreneurs—particularly in low-incomestates and underserved regions—we aim to accelerate private sector investmentin national priority areas, creating jobs and driving sustainable growth.”
IFC’s private equity fund strategy aims tobuild a broader and more robust investor base by mobilizing more privatecapital investments to support companies in emerging markets. IFC has builtlong-term partnerships with established co-investors that extend beyond asingle-project timeframe, helping mobilize funding to support companies throughmultiple fundraising cycles.
About IFC
IFC — a member of the World BankGroup — is the largest global development institution focused on the privatesector in emerging markets. We work in more than 100 countries, using ourcapital, expertise, and influence to create markets and opportunities indeveloping countries. In fiscal year 2024, IFC committed a record $56 billionto private companies and financial institutions in developing countries,leveraging private sector solutions and mobilizing private capital to create aworld free of poverty on a livable planet. For more information, visit www.ifc.org.
About Motilal OswalAlternates
Motilal Oswal Alternate InvestmentAdvisors Private Limited is a subsidiary of Motilal Oswal Financial ServicesLimited, a diversified financial services group with businesses in Securities,Asset Management, Wealth Management, Housing Finance, Private Equity andInvestment Banking. MO Alternates is one of the most respected alternatesplatform in India managing significant assets of over $2 billion across privateequity and real estate. The private equity vertical focuses on providing growthcapital to mid-market companies across its preferred sectors of consumer,financial services, life sciences and niche manufacturing, typically in therange of $30-80 million. The private equity verticalhas, in the last 20 years, made 50 investments and has exited 19 investmentsand partially exited 2 investments having delivered a gross MOIC of 5x(INR) and gross IRR of 26% % (INR), making it one of the top performingplatforms in India.
For more information, visit https://www.motilaloswalalt.com
For furtherdetails contact:
Rohini Kute
Head, Corporate Communication,
Motilal Oswal Financial Services
Mobile: 9820196838
Mail: rohini.kute@motilaloswal.com